10
No. 28894
GOVERNMENT GAZETTE, 1 JUNE 2006
made for appropriate relief to the Copyright Tribunal in terms of sections 31 to
33 of the Copyright Act, 1978.
(5) Should a tariff proposed by the collecting society not be accepted by the trade
associations and representative bodies or the potential users, user groups, or
individual users, such potential users and user groups shall have the option to
pay the amount demanded by the collecting society into an escrow account,
pending the outcome of a referral to the Copyright Tribunal or, if the parties so
agree, pending the outcome of a referral for arbitration under the Arbitration
Act, Act no. 42 of 1965, a5 amended. Any potential user or. user group in
respect of which a deposit is being made and who furnishes the required
information to the collecting society to allow for the later distribution of the
funds placed in escrow, shall provisionally be allowed by the collecting society
to engage in the use that is subject to the payment of a royalty as provided for
in section 9A of the Copyright Act, 1978, and Section 5(l)(b) of the
Performers' Protection Act, 1967.
(6) The collecting society may, pending any referral to the Copyright Tribunal or, if
the parties so agree, pending any arbitration proceedings, apply to the
Copyright Tribunal or the designated body in accordance with the provisions
of the Arbitration Act, for a ruling requiring any potential user or user group to
make payments to an escrow account of the amount demanded by the
collecting society and to furnish information that will permit the tater
distribution of the funds to be placed in such escrow account once the
Copyright Tribunal or the designated arbitration body has rendered its final
decision or award in the matter before it.
Distribution
8.(1) Subject to subregulation 6(2), a collecting society shall distribute at least once
every year amounts collected by it according to a distribution plan and after
deducting such amounts as are necessary to cover the costs incurred in the
administration of the collecting society. The first such distribution shall be
made not later than 18 months after the initial accreditation of the collecting
society and subsequently not later than any anniversary of the initial
accreditation and any renewal thereof.
(2) The costs and expenses incurred in the administration of the collecting society
shall be calculated in conformity with Generally Accepted Accounting
Practices (GAAP) set from time to time by the professional bodies of South
African chartered accountants. The manner of bookkeeping and maintenance
of records by a collecting society shall be such as to enable the ready
verification of revenue received or accrued, as well as expenditures and costs
incurred.
(3) A collecting society shall distribute the amounts collected in a manner to
reflect as nearly as possibte the actual use of sound recordings and protected
performances covered by the repertoire under its administration, taking into
account the need for an economical and efficient management of the
collecting society.
(4) A collecting society shall establish a distribution plan and apply it based on
information publicly available, trade information available to its members and
on information to be furnished by individual users and user groups in terms of
framework agreements and non-exclusive licensing agreements.